Buying a Home in Tokyo on a US Salary: Full Cost Breakdown

Tokyo is 23 wards and each ward prices differently. Let's anchor on a couple of realistic targets for an American buyer.

Entry-level 2LDK apartment (roughly 55-65 sqm, 2 bedrooms plus living/dining/kitchen):

• Suginami, Nakano, Itabashi, Adachi (outer residential wards): JPY 35,000,000 to JPY 55,000,000, or approximately USD $230,000 to $360,000 at roughly JPY 150 per USD
• Setagaya, Nerima, Meguro outskirts: JPY 50,000,000 to JPY 80,000,000, or USD $330,000 to $530,000
• Shinjuku, Shibuya, Minato periphery: JPY 65,000,000 to JPY 120,000,000, or USD $430,000 to $800,000
• Central Minato (Azabu, Roppongi, Akasaka): JPY 100,000,000+, or USD $660,000+

Detached house (kodate):

Detached houses in Tokyo sell on a very different logic from apartments. The house itself depreciates on the Japanese tax ledger to essentially zero value over 22 years for wood-frame construction; what you are really buying is the land underneath. A typical 30-tsubo (roughly 100 sqm) residential lot in a western Tokyo suburb like Suginami or Setagaya runs JPY 50 million to JPY 90 million for the land, with the structure thrown in essentially free. Most Japanese buyers then tear down the existing structure and build new on the lot, because a 30-year-old wooden house is considered to have zero market value.

For current market data, Suumo's Tokyo market reports and At Home's monthly price index publish per-ward per-square-meter numbers. The Real Estate Japan blog is the best English-language aggregator.

The exchange rate tailwind: JPY traded around 100 to 110 per USD for most of the 2010s. In early 2026 it sits closer to 150 per USD. That 35 to 40 percent depreciation of the yen against the dollar is the single largest factor in making Tokyo "cheap" for American buyers today. If you model your purchase, stress-test at JPY 120 per USD in case the Bank of Japan tightens.

Japan has essentially no restrictions on foreign real estate ownership. A non-resident American can buy an apartment or house in Tokyo with the same legal rights as a Japanese citizen. No approval from the Ministry of Land, no foreign investment filing, no trust structure. This is genuinely unusual; most countries in Asia restrict foreign ownership in some form, but Japan does not.

What you do need:

• Inkan (personal seal) and inkan registration: Every formal document in Japan is stamped, not signed. You register your inkan with the local ward office. Non-residents typically use a signature-based workaround (signature certificate, shomei-sho) from the US embassy or consulate, which Japanese notaries will accept in place of a registered inkan.
• Juminhyo or affidavit of address: Japanese residents use a juminhyo (resident certificate); non-residents provide a notarized affidavit of address from their US home jurisdiction.
• Japanese bank account: Non-residents can technically complete a cash purchase without a Japanese bank account by wiring directly to the seller's account, but in practice you will want a Japanese account for utilities, condo fees, and property tax payments. This is where the friction begins.

Opening a Japanese bank account as a non-resident is essentially impossible in 2026. Shinsei Bank, SMBC Prestia, and Japan Post Bank all require residency in Japan (or a specific visa status) to open an account. The workaround most American buyers use is a Wise multi-currency account with JPY balance or a Sony Bank WALLET debit card, both of which give you a JPY-holding facility without requiring Japanese residency. Threads on r/japanlife document the current state of play.

Real estate agent (fudosan gyousha): In Japan the agent typically represents the seller, but the commission is shared with the buyer's side, and the buyer pays a commission of up to 3 percent + JPY 60,000 + 10 percent consumption tax. For a JPY 50 million purchase that is JPY 1.566 million (USD $10,400) from the buyer, plus a similar commission from the seller. Several English-speaking Tokyo agencies cater specifically to foreign buyers: Plaza Homes, Ken Corporation, Housing Japan, and Realty Agent Tokyo.

Japanese mortgage rates are famously low. The long-standing 0.4 to 0.8 percent variable rate that prime Japanese borrowers have enjoyed for years is the envy of every American looking at 6.5 percent 30-year fixed on a Charlotte colonial. The catch, and it is a huge catch, is that Japanese banks essentially do not lend to non-residents.

2026 non-resident mortgage reality:

• Major Japanese banks (MUFG, SMBC, Mizuho, Shinsei): Will not lend to non-resident foreigners under almost any circumstances. The exceptions are buyers with Japanese permanent residency, a Japanese spouse, or a long-term employment visa with 3+ years of Japanese tax filings.
• SBI Shinsei and SMBC Prestia: The two most foreigner-friendly major banks in practice, but still require Japanese residency.
• Tokyo Star Bank: Sometimes lends to long-term residents on work visas.
• ORIX Bank: Has a specific investor-loan product (not primary residence) for non-residents, at rates closer to 3 to 4 percent and LTV capped at 50 to 60 percent.

In practice, if you are a non-resident American with a US salary and no Japanese visa, your options are:

1. Pay cash. This is what most Americans end up doing, especially for the entry-level end of the market where JPY 40-60 million is within reach of a tech-worker brokerage liquidation.
2. Use a US-based cross-border lender. A tiny handful of specialty lenders (for example, some private-banking arms) will write a USD-denominated loan against Japanese real estate, typically requiring 50 percent LTV and charging 5 to 7 percent. Niche and expensive.
3. HELOC or margin loan on US assets. The cleanest option for many. You borrow against a US home or US brokerage account at 6 to 8 percent, use the proceeds to pay cash in Japan, and avoid currency mismatch and Japanese underwriting entirely.

The r/JapanFinance community is the most authoritative English-language source on this topic; the threads are worth reading in full before you plan your financing.

Japanese closing costs are moderate but come with some items that will surprise Americans.

Registration license tax (toroku menkyo zei): 2.0 percent of the assessed value for the land transfer, 2.0 percent for the building transfer, with small reductions for primary residence and new construction. On a JPY 50 million apartment the total toroku menkyo typically runs JPY 500,000 to JPY 800,000 (USD $3,300 to $5,300).

Real estate acquisition tax (fudosan shutoku zei): Paid 6 to 12 months after closing, separately from the deed transfer. Approximately 3 percent of the assessed value of land and 3 percent of building value, with primary-residence exemptions that can reduce the land portion significantly. On a JPY 50 million apartment, plan for JPY 300,000 to JPY 700,000 (USD $2,000 to $4,600), though it can be lower with primary-residence exemption.

Stamp duty (inshi zei): JPY 10,000 to JPY 60,000 on the sales contract, based on the contract amount.

Judicial scrivener (shiho-shoshi) fees: Japan uses shiho-shoshi (roughly, a licensed specialist in real estate registrations) rather than attorneys for the actual deed filing. Fees run JPY 80,000 to JPY 200,000 (USD $530 to $1,330).

Real estate agent commission: Up to 3 percent + JPY 60,000 + 10 percent consumption tax, paid by both buyer and seller. On a JPY 50 million purchase that is approximately JPY 1,716,000 (USD $11,440) from the buyer side.

Fire insurance: Mandatory if you mortgage, otherwise recommended. JPY 50,000 to JPY 150,000 for the first several years, depending on coverage and earthquake rider.

Earthquake insurance: Strongly recommended given Tokyo's seismic exposure. Approximately JPY 30,000 to JPY 80,000 per year on top of fire insurance. Covered under the government-backed earthquake insurance scheme.

Condo fees (kanri-hi) and repair reserve (shuzen-tsumitate-kin) prorated at closing: Typically JPY 20,000 to JPY 60,000 per month combined for a Tokyo apartment, prorated for the closing month.

Property tax (koteishisan-zei) prorated: Tokyo property tax is 1.4 percent of assessed value annually (plus 0.3 percent city planning tax in urban areas), prorated at closing. On a JPY 50 million apartment, annual tax is typically JPY 100,000 to JPY 250,000 (USD $670 to $1,670). This is remarkably low compared to the US.

Total closing costs: Approximately 7 to 10 percent of purchase price for a standard Tokyo apartment transaction. On a JPY 50 million purchase, budget JPY 3.5 million to JPY 5 million (USD $23,300 to $33,300) in closing costs above the purchase price.

Let's run a concrete example. You are buying a renovated 60 sqm 2LDK in western Suginami for JPY 50 million (approximately USD $333,000), paying cash, using an English-speaking agent, as a non-resident American.

Pre-offer:

• Scout trip: USD $2,000-$3,500 (flights plus a week on the ground)
• Signature affidavit and notarization at US consulate equivalent: USD $100-$300

Offer to closing:

• Agent commission (buyer side): JPY 1,716,000 (USD $11,440)
• Earnest money deposit (5-10 percent, typically held by the agent): JPY 2.5-5 million (capital, not cost)

Closing day:

• Registration license tax: JPY 650,000 (USD $4,330)
• Stamp duty on contract: JPY 30,000
• Shiho-shoshi fees: JPY 130,000 (USD $870)
• Prorated property tax: JPY 75,000 (varies)
• Prorated condo management and repair reserve: JPY 40,000
• Fire + earthquake insurance first year: JPY 80,000
• Wire/FX costs (Wise): JPY 90,000

Post-closing (over the following 12 months):

• Real estate acquisition tax (billed 6-12 months after closing): JPY 400,000-$700,000 (USD $2,700-$4,700)
• Furnishings and appliances: JPY 400,000-$1,500,000 (USD $2,700-$10,000)

Grand total closing-all-in (excluding the purchase price itself, including the deferred acquisition tax):

Approximately JPY 3.2 million to JPY 4.4 million, or USD $21,300 to $29,300, which is 6.4 to 8.8 percent of purchase price. Call it USD $355,000 all in for a USD $333,000 Tokyo apartment.

That is extraordinarily cheap closing friction by international standards and substantially cheaper than buying in a US coastal metro. Tokyo's low transaction costs are one of its underappreciated advantages.

Tokyo is expensive for rent and restaurants but surprisingly cheap to own.

Property tax (koteishisan-zei): 1.4 percent of assessed value, which is typically 60 to 70 percent of market value. For a JPY 50 million apartment, expect JPY 100,000 to JPY 220,000 per year (USD $670 to $1,470). With the urban planning tax surcharge of 0.3 percent it can push toward JPY 280,000, still well below US equivalents.

City planning tax (toshi keikaku zei): 0.3 percent on assessed value in urban areas (all 23 Tokyo wards). Folded into the annual property tax bill.

Kanri-hi (condo management fee): JPY 12,000 to JPY 35,000 per month for a typical Tokyo apartment.

Shuzen-tsumitate-kin (repair reserve fund): JPY 10,000 to JPY 30,000 per month, separately accounted. This is non-optional and it pays for scheduled building refurbishments; if the fund is underfunded at your target building, the kumiai will issue a special assessment. Always review the long-term repair plan (chouki shuzen keikaku) before buying.

Fire and earthquake insurance: JPY 50,000 to JPY 200,000 per year combined.

Utilities: Electricity, gas, water, and internet run JPY 18,000 to JPY 35,000 per month (USD $120 to $230) for a 60 sqm 2LDK. Tokyo apartments typically lack central climate control; you run room-by-room mini-splits, which is surprisingly efficient.

Total annual carry: Roughly JPY 500,000 to JPY 1,000,000 per year (USD $3,300 to $6,700) for a JPY 50 million Tokyo apartment. That is dramatically cheaper than the US equivalent: a USD $333,000 apartment in Boston or DC would carry USD $8,000-$12,000 per year in property tax plus HOA plus insurance.

The 25-year economic hole in Japanese apartment ownership is different from the US: the building itself depreciates. Japanese market convention is that a 30-year-old concrete apartment (manshon) has roughly 50-60 percent of its original value remaining, and a 30-year-old wood house has essentially zero remaining building value (though the land holds value). This changes the rent-versus-buy math meaningfully: if your apartment is losing 1.5 to 2 percent of building value per year, you need rent-equivalent savings plus land appreciation to justify buying versus renting. The Ministry of Land, Infrastructure and Transport price index publishes the long-run data.

The common failure modes for American buyers in Tokyo:

1. Buying a manshon (apartment) assuming it appreciates like a US condo. Japanese apartments depreciate structurally; land holds value and the building does not. A 30-year-old apartment in a great location can be a good buy because you are essentially paying land value; a 10-year-old apartment is often a bad buy because you are paying for structure that will depreciate another 20 percent over your hold period.

2. Underestimating the repair reserve fund shortfall. Many older Tokyo buildings have underfunded shuzen-tsumitate-kin and owe a major renovation in 5-10 years. New owners can be hit with special assessments of JPY 1-5 million. Your agent must provide the long-term repair plan and the current reserve balance before you offer.

3. The earthquake insurance gap. Standard fire insurance does not cover earthquake damage. You need a separate earthquake rider, and even that caps at 50 percent of the fire insurance coverage under the government-backed scheme. Tokyo is overdue for a major Pacific-plate earthquake on geologist consensus, and the 2011 Tohoku event is still within living memory. Budget accordingly.

4. The non-resident tax filing trap. Non-resident owners of Japanese rental property are subject to a 20 percent withholding tax on gross rent (not net), remitted directly to the NTA by the Japanese tenant. This is a surprise to many Americans. The NTA's English-language guide to non-resident taxation has the current rules.

5. Assuming you can resell easily to another foreigner. The Tokyo resale market is 95 percent Japanese buyers, and Japanese buyers almost always use Japanese bank mortgages, which means your resale pool excludes exactly the type of buyer who bought your unit. Plan to hold for 5+ years or accept a meaningful discount on rapid resale.

6. Land lease (shakuchi) apartments. Some older central Tokyo buildings sit on leased land (shakuchi-ken), not freehold (shoyuken). The building is yours; the land is leased from a landowner, often a family trust or a temple. These units are priced 20-40 percent below comparable freeholds, and for good reason: at lease renewal (often 30-50 year leases) you may face large payments or lose the right to continue. Confirm the tenure type before you offer.

Tokyo is a strong buy for a specific profile and a bad buy for everyone else.

Buy in Tokyo if:

• You have Japanese residency (work visa, spouse visa, HSP visa with mortgage track, or permanent residency) or are within 2 years of it
• You can pay cash, or finance against US assets rather than trying to source a Japanese non-resident mortgage
• You have spent at least 3 months in the specific ward you are targeting
• You plan to hold 7+ years (to amortize structural depreciation with land appreciation)
• You are comfortable with the yen exchange rate staying in the 140-160 per USD band

Rent in Tokyo first if:

• You are a non-resident whose long-term Japan plan is still undecided
• Your budget is above JPY 100 million (at which point building quality and land value tradeoffs become much more consequential and professional advice matters more)
• You are specifically interested in the akiya route (in which case our Kyoto vs Osaka akiya post covers the economics)
• You were planning to rent it out on Airbnb (Japan's minpaku regime has tightened significantly and operator restrictions apply in most Tokyo wards)

The sequencing that works: get a long-term visa first, rent a furnished apartment in your target ward for 6-12 months, build a Japanese credit footprint through a Japanese phone plan and credit card, open a Japanese bank account (which is possible once you are resident), and then shop with an English-speaking agent like Plaza Homes or Housing Japan. For the deeper picture, our moving to Japan guide and cost of living in Japan are the natural next reads. For live Tokyo inventory, see our Tokyo property search.